A Model for Comparative Analysis of Inventory Costs of JIT and EOQ Purchasing in the Ready Mixed Concrete Industry

Abstract:

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A model for comparing the inventory costs of purchasing under the economic order quantity (EOQ) system and the just-in-time (JIT) order purchasing system in existing literature concluded that JIT purchasing was virtually always the preferable inventory ordering system especially at high level of annual demand. By expanding the classical EOQ model, this paper shows that it is possible for the EOQ system to be more cost effective than the JIT system once the inventory demand approaches the EOQ-JIT cost indifference point. The case study conducted in the ready-mixed concrete industry in Singapore supported this proposition.

Info:

Periodical:

Materials Science Forum (Volumes 532-533)

Edited by:

Chengyu Jiang, Geng Liu, Dinghua Zhang and Xipeng Xu

Pages:

1020-1023

DOI:

10.4028/www.scientific.net/MSF.532-533.1020

Citation:

M. Wu and M. Z. Xu, "A Model for Comparative Analysis of Inventory Costs of JIT and EOQ Purchasing in the Ready Mixed Concrete Industry", Materials Science Forum, Vols. 532-533, pp. 1020-1023, 2006

Online since:

December 2006

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$35.00

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